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Huadian Energy Company (900937) Fair Value & Analysis

Utilities · CN · Market cap $2.0B

HE Huadian Energy Company 900937 · SHG
Price$0.2180
Fair Value$0.4600
Upside+111.0%
Quality39/100
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Expensive Growth
Thin margins · 2.0% net margin
High debt · generates free cash flow
Ranks above peers (8/13)
Narrow moat 42/100
Evidence: Medium Range $0.3400 – $0.5700 Share as image

Fair value as of: Jul 7, 2026

From 24 valuation models · updated 34 days ago

Share price −1.8% over the past month.

Below-average quality, screening 111% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (39/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case ($0.3400). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

$0.2580 $0.1130 Fair Value $0.4600 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 7, 2026.

How to read this chart

60‑month range $0.1130 – $0.2580 · fair‑value band $0.3400 – $0.5700 · the $0.2180 price screens below the $0.4600 fair value. Dashed = 300-day average. As of Jul 7, 2026.

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Analysis

Huadian Energy Company (900937) currently trades at $0.2180, while our model-based Fair Value estimate is $0.4600, implying the stock looks roughly 111.0% undervalued today. The Quality Score stands at 39/100 (below-average quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Huadian Energy Company generated revenue of $16.5B at a net margin of 2.0%. Revenue declined 2.9% year over year. It earns a return on equity of 14.1%. Net debt stands at $8.8B. Fundamentals as of Jul 7, 2026

Our scenario range runs from $0.3400 (bear case) to $0.5700 (bull case); at $0.2180, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 44% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -59% fair-value upside, at 111%, 900937 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $0.7300 $1.21 $1.85 80
Residual Income $0.4000 $0.4000 $0.3800 76
Rev-Margin DCF $1.34 $2.48 $3.73 74
All 24 models by family
DCF Models
FCF DCF $0.7100 $1.24 $1.99 38
5Y Revenue Exit $1.34 $2.48 $3.93 39
5Y EBITDA Exit $1.94 $3.59 $5.47 41
5Y P/E Exit $0.1700 $0.3700 $0.5600 38
10Y Revenue Exit $1.02 $1.99 $3.25 36
10Y EBITDA Exit $1.46 $2.72 $4.36 37
10Y P/E Exit $0.3700 $0.5700 $0.8000 35
Earnings-Based
Graham-Dodd $0.1700 $0.4600 $0.6000 54
PEG = 1.0 $0.0900 $0.1300 $0.1600 46
EPV $1.61 $1.93 $2.21 59
Dividend Discount
Gordon GGM $0.4600 $0.9200 $1.40 70
DDM Multi-Stage $0.4600 $0.7100 $0.9500 61
Multiples
P/E Multiple $0.3400 $0.4600 $0.5700 63
P/S Multiple $0.3200 $0.4300 $0.5400 58
P/B Multiple $0.3200 $0.4300 $0.5400 55
EV/EBIT $2.38 $3.32 $4.26 53
EV/EBITDA $3.10 $4.28 $5.46 54
EV/Revenue $1.84 $2.82 $3.80 43
Asset-Based
NCAV (Graham) $0.2600 $0.3500 $0.5200 50
Growth DCF
Growth DCF $0.7300 $1.21 $1.85 80
Rev-Margin DCF $1.34 $2.48 $3.73 74
Economic Profit
Residual Income $0.4000 $0.4000 $0.3800 76
ROIC Compounder $1.71 $2.20 $2.72 72
Growth Earnings
Growth-Adj P/E $0.2700 $0.3900 $0.5000 68

Widest divergence: DCF Models ($1.99) versus Asset-Based ($0.3500). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $16.5B
Revenue growth (YoY) -2.9%
Net margin 2.0%
Return on equity 14.1%
Free cash flow $882M FY2025
P/E ratio 25.6
More key figures
Operating margin 22.2%
EPS (TTM) $0.0100
EPS growth (YoY) +33.3%
Net debt $8.8B FY2025

Figures from reported company fundamentals · as of Jul 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 39/100

Of which business quality 38 · Market factors (momentum, volatility) 74

Profitability 24
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 13
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 84
Price trend over the last 3–12 months (market factor)
52W Momentum 61
Distance to the 52-week high (market factor)
Net Issuance 52
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Huadian Energy Company Limited engages in the generation and sale of electric power in China. The company generates electric power through thermal sources, as well as provides heat services. It also involved in coal production and sales business. It has an installed capacity of 25.7693 million kilowatts of thermal power.

Full company description

Huadian Energy Company Limited engages in the generation and sale of electric power in China. The company generates electric power through thermal sources, as well as provides heat services. It also involved in coal production and sales business. It has an installed capacity of 25.7693 million kilowatts of thermal power. The company was formerly known as Heilongjiang Electric Power Co. Ltd. and changed its name to Huadian Energy Company Limited in July 2004. Huadian Energy Company Limited was founded in 1993 and is based in Harbin, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Huadian Energy Company reported revenue of $16.7B in FY2025 versus $9.8B in FY2021, a compound +14.2%/yr. Reported net income was $200M in FY2025.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$16.7B
Latest YoY
−8.2%
Avg. growth/yr (3Y)
−4.1%
Avg. growth/yr (5Y)
+9.3%
Avg. growth/yr (10Y)
+6.1%
Revenue +14.2%/yr
FY21 $9.8B
FY22 $18.9B
FY23 $18.8B
FY24 $18.2B
FY25 $16.7B
Net income
FY21 −$2.9B
FY22 −$1.0B
FY23 −$91.0M
FY24 $166M
FY25 $200M

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Cite: Fair Value Calculator (2026). "Huadian Energy Company Fair Value". https://www.fairvalue-calculator.com/stock/900937

Peer Group

Utilities - Independent Power Producers · 78 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 39 · Bottom 25%
Fair Value upside +111% · Top 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 22% · Top 25%
Revenue growth -3% · Above median
Debt / equity 1.74× · Higher than 75% of peers

Valuation Multiples vs Utilities - Independent Power Producers median · lower = cheaper

P/E (TTM) 25.6× · Pricier than median
P/B 0.49× · Cheaper than 75% of peers
P/S (TTM) 0.12× · Cheaper than 75% of peers
P/FCF 2.3× · Pricier than median
EV/EBITDA 1.5× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 23
FUTURE 0 · sector 0
PAST 57 · sector 31
HEALTH 13 · sector 70
DIVIDEND 0 · sector 52

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Independent Power Producers stocks, each showing price versus our Fair Value estimate (as of Jul 7, 2026).

Stock Price Fair Value vs Fair Value
Constellation Energy Corporation CEG $257.57 $89.08 -65%
Vistra Corp VST $158.86 $47.59 -70%
Adani Power Limited ADANIPOWER ₹218.45 ₹75.57 -65%
CGN Power Co 003816 ¥3.88 ¥3.13 -19%
NRG Energy, Inc NRG $137.90 $56.02 -59%
Gulf Development Public Company GULF 67.50 THB 40.44 THB -40%
Adani Energy Solutions Limited ADANIENSOL ₹1,730 ₹342.02 -80%
Talen Energy Corporation TLN $372.37 $44.67 -88%
Datang International Power Generation Co 601991 ¥5.80 ¥4.95 -15%
Power Assets Holdings 0006 HK$58.45 HK$31.90 -45%

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Frequently asked questions

Is Huadian Energy Company (900937) overvalued or undervalued?
As of Jul 7, 2026, our model estimates a fair value of $0.4600 versus a price of $0.2180, about +111% (undervalued).
What is the fair value of 900937?
Our model-based fair value for Huadian Energy Company is $0.4600 (as of Jul 7, 2026), built from audited fundamentals. The current price is $0.2180.
What is the quality score of 900937?
Huadian Energy Company has a Quality Score of 39/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Huadian Energy Company (900937)?
Huadian Energy Company reported trailing-twelve-month revenue of about $16.5B (latest available figure, as of Jul 7, 2026).
What is the net profit margin of 900937?
The net profit margin of Huadian Energy Company is about 2.0%, meaning it keeps roughly 2.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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